Did anyone else notice how confusing TurboTax made this whole situation? I specifically remember when filing my 2022 return last year, TurboTax had a clear section asking "Did you receive advance Child Tax Credit payments in 2022?" but the correct answer was NO because advances only went out in 2021. Now for 2023 returns, they've finally removed that confusing question altogether. Wouldn't it have been more helpful if they'd explained this change somewhere in the interface?

I filed on February 15th this year and had the exact same concern. The advance Child Tax Credit reconciliation was a major part of filing for tax year 2021 (filed in 2022), but was already less prominent for tax year 2022 (filed in 2023). For this year's filing (tax year 2023), there's no question because there were no advances paid during 2023. The Child Tax Credit itself is still there at $2,000 per qualifying child, but without the advance payment component that existed only in 2021.

Did the IRS tell you specifically what caused the issue last year? I'm wondering if it was a simple oversight or something more significant that might trigger a pattern?

The IRS utilizes what's called the Discriminant Function System (DIF) to score returns for audit potential. While previous compliance issues can influence your DIF score, a single resolved issue typically doesn't significantly impact future filings. However, the IRS does maintain a Compliance Research Database that tracks patterns over multiple years. If you're concerned, ensure meticulous documentation for any areas similar to your previous adjustment. For immigrants specifically, the IRS recognizes there's a learning curve with U.S. tax law and generally doesn't penalize good-faith efforts to comply, even with occasional errors.

I think we should be careful about suggesting someone can simply not report income... The employer may have already submitted their information to the IRS, and the system is designed to match these reports. While it's true the IRS is understaffed, their automated systems still flag discrepancies between reported income and filed returns. The potential consequences of intentional omission might outweigh any small tax savings.

IMO ur overthinking this. Just add it to ur return - ez fix. If u got a W-2, the IRS already knows about it anyway. Their computers auto-match that stuff. If u didn't get a form, technically still reportable but tbh the risk/reward is diff. Def report if u got official docs tho. BTW if ur using tax software it'll take like 2 mins to add another W-2 or 1099. Not worth the stress of wondering if they'll catch it.

You might want to consider opting out of advance payments altogether if your income fluctuates. I typically recommend that remote workers with variable income take the full credit at tax time instead of monthly advances, particularly if there's any possibility your annual income might exceed eligibility thresholds. This approach generally eliminates potential repayment obligations if your actual 2024 income differs substantially from your 2023 reported income. The opt-out deadline is usually around the 28th of the month prior to the payment month.

Just adding that I got accepted last week and saw nothing about advances on my account for 2 weeks. Then suddenly it appeared in my IRS account under the 'Messages' tab, not where I expected it. Check there. Also make sure you actually qualify - they look at your AGI, filing status, and number of qualifying children. I think the income limit is $200,000 for single filers and $400,000 for married filing jointly.

The health insurance verification process typically takes 6-10 weeks from the date of rejection. But is that really the whole story? Not always. If you received a specific error code related to Form 8962 (Premium Tax Credit), the process might be expedited. Have you checked your online account for any notices requiring a response? Sometimes what appears to be a rejection is actually a request for additional information, and the clock doesn't start until you provide it.

My health insurance rejection took 45 days to resolve, while my sister's took only 21 days. The difference? She had all her 1095-A forms properly reconciled with her 8962, while I had a discrepancy. If your situation is like mine where the marketplace information doesn't match what you reported, expect closer to 6-8 weeks. If it's more like my sister's where it's a simple verification issue, it might be closer to 3-4 weeks. Would you say your situation involves a data mismatch or just verification?